Dakota company experienced the following events during year 2.

acquired $20,000 cash from the issue of common stock.
paid $25,000 cash to purchase land.
borrowed $10,000 cash.
provided services for $42,500 cash.
paid $1,500 cash for utilities expense.
paid $30,000 cash for other operating expenses.
paid a $3,000 cash dividend to the stockholders.
determined that the market value of the land purchased in event 2 is now $27,500.

prepare an income statement.

Your company is starting a new r& d initiative: a development of a new drug that dramatically reduces the addiction to smoking. the expert team estimates the probability of developing the drug succesfully at 60% and a chance of losing the investment of 40%. if the project is successful, your company would earn profits (after deducting the investment) of 9,000 (thousand usd). if the development is unsuccessful, the whole investment will be lost -1,000 (thousand usd). your company's risk preference is given by the expected utility function: u(x) v1000 +x, where x is the monetary outcome of a project. calculate the expected profit of the project . calculate the expected utility of the project . find the certainty equivalent of this r& d initiative . find the risk premium of this r& d initiative e is the company risk-averse, risk-loving or risk-neutral? why do you think so?